TCR_Public/980618.MBX T R O U B L E D   C O M P A N Y   R E P O R T E R
      Thursday, June 18, 1998, Vol. 2, No. 119


BARNEY'S: The Pressman's Step Down
BRAUN'S FASHIONS: Annual Meeting of Shareholders July 22
BRODERBUND: Stock Falls After $3.3 Million Loss Announced
BUILDERS TRANSPORT: Enters Agreement with CIT Group
CHINA PACIFIC: Nasdaq Decides Not to De-list Common Stock

COUNTY SEAT: Reports Sales for 13 Weeks Ended May 2, 1998
EDISON BROTHERS: Reports Sales for First Quarter of 1998
GOLDEN BOOKS: Obtains $30 Million Working Capital Credit
HEILIG-MEYERS: Optimism Over Improved Results
HOME HOLDINGS: Proposes to Issue Senior Notes

HOMEPLACE: Nassi Venture Tops Hilco In GOB Auction
INTERMET: Joint Venutre Company Enters Bankruptcy
KIA: Workers Near Accord
LEVITZ: Study Results in Closing 13 Stores and Opening 7
MARUSHO KOSAN: Judged Bankrupt in Tokyo

MOBILEMEDIA : Seeks Exclusivity Extension To Sept. 30
PETRIE RETAIL: Wins Approval To Terminate Pension Plan
R&S/STRAUSS: Wins Approval For Interim Cash Collateral Use
RIVATEX: Kenya's Local Textile Industry Looks Bleak

STEELTECH: Uncertain Future - Still Denying Bankruptcy
UNISON HEALTHCARE: Sees EBITDAR Of $26M After Restructuring
WASTEMASTERS INC: Acquires Holsted Enterprises
WESTMORELAND: To Appeal Court Decision on Health Benefits
ZENITH: Zenith Names New CFO


BARNEY'S: The Pressman's Step Down
The New York Times reports on June 17, 1998 that Bob and
Gene Pressman, the grandsons of the founder of Barney's
Inc. will step down as co-chief executives as early as this
week as part of the company's plan to emerge from
bankruptcy.  The two brothers will receive consulting
contracts.  Thomas C. Shull, who was named president of the
company in September is viewed as responsible for the
improvements in operating income over the last year.  He
will become the chief executive officer.  According to the
article, who will get seats on the new board of directors,
a choice spot, is a big question in the retail industry.
Interestingly, Bonnie Pressman, Gene's wife, will remain
the retailers' fashion director, and perhaps gain more
responsibilities in the reorganization.

BRAUN'S FASHIONS: Annual Meeting of Shareholders July 22
The Annual Meeting of Shareholders of Braun's Fashions
Corporation will be held on July 22, 1998 for the following

1. To elect two Class 1 directors to serve on the Board of
Directors for a term of three years;

2. To increase the number of shares of Common Stock
reserved for issuance under the Company's 1997 Stock
Incentive Plan from 300,000 to 450,000 shares;

3. To adopt a 1998 Director Option Plan;

4. To consider and act upon a proposal to approve stock
options granted to the Company's non-employee directors;

5. To ratify the appointment of Price Waterhouse LLP as the
Company's independent auditors for the fiscal year ending
February 27, 1999.

BRODERBUND: Stock Falls After $3.3 Million Loss Announced
The stock of Broderbund Software Inc. fell 15 percent today
after the producer of software for homes and small business
said it could lose as much as $3.3 million in its third
quarter.  The Novato, Calif.-based company said it expects
to report a loss of 12 cents to 15 cents a share for its
third quarter ended May 31, primarily caused by high
product returns and customer rebates. A First Call Corp.
survey of analysts had estimated earnings of 1 cent per
share for the quarter.  Broderbund said it expects revenue
of $52 million. In the year-earlier quarter, it earned
$11,000 on revenue of $39 million. Broderbund also  
announced that it had retained the investment banking firm
of Donaldson, Lufkin  & Jenrette in order to explore
"strategic alternatives," but declined to comment further.
(Chicago Sun Times - 06/15/98)

BUILDERS TRANSPORT: Enters Agreement with CIT Group
Builders Transport, Incorporated announces in a form 8-K
filed with the SEC, that the Company has entered into an
agreement with CIT Group/Business Credit, Inc., the lead
lender under the Company's existing working capital credit
facility for use of cash collateral to fund on-going
operations.  This agreement is limited in duration to 35
days from the date of the petition.

Based in Camden, S.C., Builders Transport is a truckload
carrier that transports a wide range of commodities in both
intrastate and interstate commerce.  The company provides
dedicated contract carriage, dry van and flatbed service
for shippers of a variety of products in medium, short-haul
and regional markets.  The company's stock is traded over
the counter under symbol TRUK.

CHINA PACIFIC: Nasdaq Decides Not to Delist Common Stock
A hearing was held before the Nasdaq Stock Market Inc.
Listing Qualifications to consider whether the common stock
of China Pacific Inc. should be delisted from the Nasdaq
SmallCap Market due to the company's failure to file its
Form 10-K for the period ended Dec. 31,1997, and its Form
10-Q for the quarter ended March 31, 1998, on a timely

It was determined in a hearing that China Pacific may
continue to be listed on Nasdaq pursuant to certain
exceptions, including the following: The company must file
its Form 10- K for the fiscal year ended Dec. 31, 1997,
with the Securities and Exchange Commission and Nasdaq on
or before June 15, 1998; and the company must also file its
Form 10-Q for the quarterly period ended March 31, 1998, by
June 22, 1998.

On June 15, 1998, China Pacific filed with the SEC and
Nasdaq its form 10- K for the fiscal year ended Dec. 31,
1997 confirming a substantial loss for 1997 of $15.1
million, compared with a net income of $10.1 million  
during 1996. The company's unaudited management accounts
for the three months ended March 31, 1998, indicate that
the company continues to incur losses.

The downturn in 1997 is attributable both to the general
economic conditions prevailing in Asia and to specific
management problems at the company's joint-venture partner,
Chengdu Iron and Steel Plant (CISP), and the company's 60
percent owned joint-venture subsidiary, Chengdu Chengkang
Iron and Steel Co. Ltd. (Chengdu Steel).

Chengdu Steel and CISP have entered into an agreement
recognizing that CISP, and not Chengdu Steel, is
responsible for repayment of the Rmb211 million
bank loans but it is unclear when, or whether, the
bankloans will be transferred back to CISP.  As a condition
to request a transfer of the loans back to CISP, CISP has
to obtain permission from the relevant Chinese governmental
authorities to use its real property as collateral for the
loans. CISP has made an application for such use of its
real property to the relevant Chinese governmental
authorities and is awaiting their approval.

If such short-term bank loans are not transferred back to
CISP, and the company is required to repay such loans
during 1998, it is unclear whether the company will have
the necessary cash resources to pay back the loans. This is  
due to the substantial losses the company incurred during
1997, and the fact that its current liabilities exceeded
its current net assets as of Dec. 31, 1997, by
approximately Rmb290.9 million.  The company's operating
loss, coupled with the uncertainties surrounding the Open
View Properties and CISP receivables, has caused some
uncertainty as to whether the company will be able to repay
the approximately $15 million in 9 percent convertible
debentures it currently has outstanding when due.

The foregoing matters resulted in the inability of the
company's auditors to express an opinion on the company's
financial statements for 1997.  At Dec. 31, 1997, the
company's current liabilities exceeded its current assets
by approximately Rmb290.9 million. The company's unaudited
management accounts for the three months ended March 31,
1998, indicate that the company has continued to incur

COUNTY SEAT: Reports Sales for 13 Weeks Ended May 2, 1998
                               May 2,1998      May 3,1997
                               -----------     -----------
Net sales                          $63,232       $93,158
Cost of sales                       47,259        77,729
Gross profit                        15,973        15,429
general and
administrative expenses             22,677        23,290
Depreciation and amortization        2,782         2,200
Reorganization costs                               4,179
Interest expense, net                3,279         1,243

Loss before income tax (benefit)  (12,765)       (15,483)
Income tax (benefit)               (3,650)                 
Net loss                          $(9,115)      $(15,483)

EDISON BROTHERS: Reports Sales for First Quarter of 1998
For the first quarter of 1998, Edison Brothers Stores Inc.  
reported a net loss of $22.3 million on net sales of $206.2
million.  The net sales were a decrease of 7.9% from the
comparable period of 1997. The decrease reflected an 8.8%
decrease in the average number of stores in operation
between the first quarter of 1997 and first quarter of
1998. Same-store sales declined 2.4%.

GOLDEN BOOKS: Obtains $30 Million Working Capital Credit
On June 3, 1998, Golden Books Family Entertainment, Inc.
announced that it had obtained a previously disclosed $30
million, three-year working capital credit agreement with
NationsCredit Commercial Corporation, through its
NationsCredit Commercial Funding division.  In conjunction
with the New Credit Facility, the indenture relating to the
7.65% Senior Notes due 2002 of Golden Books Publishing
Company, Inc. was amended. A full-text copy of the filing
is available via the Internet at:

HEILIG-MEYERS: Optimism Over Improved Results
Heilig-Meyers Company today reported consolidated results  
for the first quarter ended May 31, 1998. Net earnings were
$10.2 million or $0.17 per share, compared to $13.8 million  
or $0.25 per share in the prior year.  Total revenues for
the quarter increased 18.1% to $668.9 million, compared to
$566.3 million for the quarter ended May 31, 1997.

Troy A. Peery, Jr., President and Chief Operating Officer,
commented that the first quarter results showed
considerable improvement from that of recent  
periods.  He attributed these results to better performance
in the Heilig-Meyers Furniture division, resulting from
initiatives associated with the Company's "Profit
Improvement Plan," as well as strong performance in the  
Mattress Discounters and The RoomStore divisions.   Mr.
Peery added that operating results for stores closed during
the quarter, pursuant to the Profit Improvement Plan,
negatively impacted results by approximately $0.05 per
share as anticipated.

William C. DeRusha, Chairman and Chief Executive Officer,
commented that during the quarter the Company made
significant progress with respect to its  
strategic initiatives and based on operating results, it
appears that the Company is on track to accomplish the
objectives outlined in the Profit Improvement Plan for the
Heilig-Meyers Furniture division.   He commented that  
the Company successfully implemented a number of cost
control measures which had a favorable impact on the

HOME HOLDINGS: Proposes to Issue Senior Notes
In a Form T3 filed with the SEC, Home Holdings Inc.
proposes to issue under the Plan, Senior Notes due 2006
under an indenture and up to 315,000 Units of Earn Out
Notes, Series I under an indenture. The Notes will be
issued to discharge in part claims of existing
creditors in the Bankruptcy Case.

A full-text copy of the filing is available via the
Internet at:

HOMEPLACE: Nassi Venture Tops Hilco In GOB Auction
A joint venture of Nassi Group L.L.C., Gordon Brothers
Retail Partners L.L.C., and Alco Capital Group won Monday's
auction over Hilco/Great American Group to serve as
HomePlace Stores Inc.'s liquidation agent for store closing
sales at 10 locations. The group's winning bid guarantees
the retailer 81.75 percent of the $30 million of store
inventory at retail, compared with Hilco's stalking horse
bid of 80 percent. The closing sales were scheduled to
begin June 16. (The Daily Bankruptcy Review Copyright c
June 17, 1998 - ABI 17-June -98)

INTERMET: Joint Venutre Company Enters Bankruptcy
Intermet Corporation (Nasdaq: INMT) announced that IWESA
GmbH, an Intermet joint venture company, has entered
bankruptcy proceedings.  IWESA GmbH is a machining company
located in Saarbrucken, Germany and machines precision
parts including Intermet's castings, principally for the
vehicular industry.  IWESA continues to operate under the
protection of a bankruptcy referee.

Intermet also announced the sale of its Industrial Powder
Coatings, Inc. (IPC) subsidiary to Industrial Powder
Coatings Acquisition Corp., a group of investors led by
M.G. Capital, L.L.C. of Chicago, Illinois.  Industrial
Powder Coatings, Inc. was purchased by Intermet
as part of the Sudbury acquisition in December 1996.
1997 sales of IPC were $62 million.

Doretha Christoph, Vice President-Finance and Chief
Financial Officer, said  that, "The net impact of the two
above-mentioned events is expected to have little, if any,
impact on Intermet's income statement for the second
quarter.  The sale of IPC created nominal gain, and losses
from the IWESA bankruptcy are  expected to be primarily
attributable to the write-off of IWESA receivables to  
Intermet's Neunkirchen foundry, most of which was reserved
in 1997."

KIA: Workers Near Accord
Management and labor unions at South Korea's ailing  
Kia Motors Corp. have struck a temporary accord to end a
16-day-old strike by 14,000 workers, a union spokesman said
Tuesday.  The tentative agreement came after Kia agreed to
pay half of back wages or four months of salaries during
marathon talks involving representatives from the
management, labor union and the government. (Agence France
Presse - 06/17/98)

LEVITZ: Study Results in Closing 13 Stores and Opening 7
Levitz Furniture Corporation announced the conclusions of a
major study of regional markets across the country that has
been ongoing for several months. The study weighed current
and future competitive strength and current realizable real
estate values. Consequently, the company has decided to
close 13 stores in 5 markets where it lacks market
dominance and expects to open stores in 7 markets where its
competitive position is already strong. The company will
seek court approval in its reorganization case for these

Markets affected by closures are Orlando and Tampa, FL, St.
Louis, MO, San Diego, CA, and Denver, CO. Levitz will seek
to open approximately 15 new leased sites in the next
eighteen-month period, primarily in the New York, Los
Angeles, Seattle and Philadelphia metropolitan areas. New
sites would be serviced from existing distribution
facilities for maximum efficiency.

The company is actively reviewing several sites in the
referenced markets and will aggressively pursue opening
stores in these areas. Additionally, negotiations are close
to conclusion for the relocation of the main Phoenix  
store, which opened in 1963.

MARUSHO KOSAN: Judged Bankrupt in Tokyo
Marusho Kosan, a member of the real estate industry, has
been judged bankrupt by the Tokyo District Court, says
Tokyo Shoko Research, a private credit-investigation
agency.  This marks the fourth major business failure of  
the year.  Marusho Kosan is thought to carry a liabilities
burden totaling 167.0 billion yen. Worsening conditions in
the real estate industry were compounded by the burden of
borrowings, generating massive losses on the company's
books. Riding the heady wave of land prices in the  bubble
era, the company got involved in large- scale properties.   

Performance was steady, substantiated by revenues of about
45.2 billion yen for the November-end 1989 fiscal year.  
The company set up a stream of businesses, diversified into  
brand-name  clothing manufacture and sales, and even
sponsored a racing car team.  But when top management were
embroiled in an illegal financing scandal, the company's
credibility faltered.  The poor operating environment did  
nothing to help the company's  situation. (Tokyo Financial
Wire; 06/17/98)                        

MOBILEMEDIA : Seeks Exclusivity Extension To Sept. 30
Still in talks concerning "material amendments" to its
reorganization plan, MobileMedia is seeking an
extension of the exclusive period for soliciting plan
acceptances to Sept. 30.  The plan amendments "could
involve the Debtors' emerging from Chapter 11 either as a
stand-alone company or as part of a third-party
business combination," the paging concern said. (Federal
Filings Inc. 17-June-98)

PETRIE RETAIL: Wins Approval To Terminate Pension Plan
Petrie Retail Inc. won approval to terminate its pension
plan pursuant to an agreement with the Pension Benefit
Guaranty Corp. The U.S. Bankruptcy Court in Manhattan
approved an agreement under which Petrie will provide the
PBGC with a $1.4 million allowed administrative claim in
settlement of three claims against the company totaling at
least $13.5 million. The apparel retailer has said junior
lender Warburg Pincus Ventures L.P. would not agree to a
reorganization plan that includes the continued existence
of the pension plan after confirmation. ( The Daily
Bankruptcy Review Copyright c June 17, 1998 ABI - 17-June-

A letter sent by Ernst & Young to the SEC was filed in a
form 8-KA with the SEC.  The letter states that the
disclosures of Premier Laser Systems, Inc. do not
adequately describe revenue recognized in December, 1997.  
Ernst & Young LLP had concluded and reported to the company  
that the recognition of $2.4 million of revenue from a
recorded transaction with a new distributor was
inappropriate and that the company's third quarter
financial statements must be restated. E&Y had concluded
the $2.4 million transaction, which involved the movement
of dental lasers and related products to the warehouse of a
freight forwarder located in Irvine, California,
represented a bill and hold transaction for which revenue
recognition was not appropriate at December 31, 1997.

Ernst & Young also stated that it does not believe the
scope of the investigation by the special committee and
special counsel complied with their recommendations.

R&S/STRAUSS: Wins Approval For Interim Cash Collateral Use
R&S/ Strauss Inc. has court authorization to use its
lender's cash collateral on an interim basis consistent
with a budget, pending a June 26 final hearing.  The auto
parts retailer may use National Canada Financial Corp.'s
(NCFC) cash collateral through the earlier of July 1 or the
date the company's $25 million debtor-in-possession
financing agreement wins interim approval and NCFC's line
of credit is paid in full. (Federal Filings Inc. 17-June-

RIVATEX: Kenya's Local Textile Industry Looks Bleak
The future of the local textile industry looks bleak
following the collapse of Kenya's only remaining
Government-owned textile company the Rift Valley  
Textile. The fate of the company would have been sealed
last week had the Government not moved to place it in

The decision was supported by the various debenture holders
who have a charge over the assets of the company.
Rivatex was unable to service loans from the debenture
holders who include the Industrial and Commercial
Development Corporation, the Industrial  
Development Bank and the Development Bank of Kenya.

The company is also indebted to other corporations
including the Kenya Posts and Telecommunication
Corporation, Kenya Power and Lighting Company and the  
Municipal Council of Eldoret.  By putting the company in
receivership, the government plans to save the assets from
being auctioned by creditors through court action.
(Africa News Service - 06/09/98)

STEELTECH: Uncertain Future - Still Denying Bankruptcy
Steeltech Manufacturing Inc. may soon lay off workers and
could face bankruptcy as its two major contracts run out.
With just weeks to go on the deals, Steeltech has been
unable to land new business. The metal fabricating and
painting firm is in its third year of a contract  
to paint underbody frames of the Dodge Ram for Tower
Automotive Corp. That contract expires June 30.

The company also has a $68 million subcontract to build
flat racks, or cargo beds, for U.S. Army trucks being built
by Oshkosh Truck Corp. That contract will end in mid-July.
Together, the contracts represent about 80% of Steeltech's
sales.  Steeltech President Chuck Wallace has acknowledged
layoffs are possible, but the company's executives remain
optimistic.  Hugh Nelson, Steeltech's vice president of
marketing, noted that the company reported its first
operating profit in 1997. And for the first quarter of
1998, he said, the company reported a net profit.

"The months of April and May have been very good for
Steeltech, and we anticipate having a net profit for the
second quarter of 1998," he said. "We have been able to
turn the corner and report net profits because we have been
able to increase production and productivity,  as well as
reduce and control costs," Nelson said.

One creditor, Super Steel Products, retained Milwaukee
bankruptcy attorney  David A. Erne in April to find a buyer
for Steeltech's equipment and facilities. Super Steel is
trying to recover $2 million from Steeltech for equipment
it leased to the company.  Moreover, Steeltech owes
millions to the city, state and other  secured creditors
and is months behind in its payments. The company said last
week it continues to negotiate with the creditors.

The creative public-private financing package designed by  
Steve Kent, of  Robert W. Baird & Co., "was probably one of
the most complex financing plans of any start-up in the
history of North America," said Steve Anderson, executive  
vice president of Witech Corp., the venture capital arm of
Wisconsin Energy Corp., which owns 1.47% of Steeltech.

Steeltech was caught off guard when its disadvantaged
status  was challenged  by a competitor, and the company's
executives were  unable to verify its status  within the
10-day period the SBA required.  The company eventually
proved its minority status but by then had lost the  
contract.   Wallace blamed some of the company's problems
on delays in its $68 million subcontract to build cargo
beds for Army trucks. Among other things, the work  
had been delayed by design changes the Army ordered.
(Milwaukee Sentinel Journal - 05/31/98)

UNISON HEALTHCARE: Sees EBITDAR Of $26M After Restructuring
Unison Healthcare Corp. estimated that its annual revenues
and EBITDAR (earnings before interest, taxes,
depreciation, amortization, and rent) would total about
$156 million and $26 million, respectively, if the
company's proposed restructuring goes as planned.  After
the restructuring, the nursing home operator, which had
1997 revenues of $224.2 million, expects to have
approximately $30 million to $40 million of debt. (Federal
Filings Inc. 17-June-98)

WASTEMASTERS INC: Acquires Holsted Enterprises
Effective March 31, 1998, WasteMasters, Inc. reports to the
SEC that it acquired Holsted Enterprises, Inc. and its
wholly-owned  subsidiary,  Sales  Equipment Company, Inc.
in exchange for 7,600,000  restricted  shares of the
Company's Common Stock and warrants to purchase an
additional 3,000,000 restricted shares of its Common Stock  
until specified time periods at an exercise price of $4.17  
per share.  The consideration given for the transaction  
will be valued, for accounting purposes at approximately  
$ 6.5  million.  Holsted generated revenues in 1997 of over
$7.6 million through its subsidiary.  
A full-text copy of the filing is available via the
Internet at:[filename].txt

WESTMORELAND: To Appeal Court Decision on Health Benefits
Westmoreland Coal Co. plans to appeal a recent bankruptcy
court ruling that set lifetime health benefits for one
retired coal miners' pension plan at $146.1 million, a
figure the company says it is unable to pay. In the
reorganization plan, the company hoped to satisfy the
obligations of three pension plans with about $75 million
in cash and 10 percent equity stake in the company, which
would have put the entire package at around $95

The pension benefits are claimed under the Coal Act, which
guarantees lifetime health benefits to retired miners and
their dependents. Under the Coal Act Westmoreland is
obliged to pay health benefits for retired workers from
other coal companies that are no longer doing business.
(ABI 17-June-98)

ZENITH: Zenith Names New CFO
Zenith Electronics Corp., the financially troubled maker of
consumer electronics, said Monday that Edward J. McNulty
has been named chief financial officer and executive vice
president.  McNulty had been CFO of General Binding  
Corp. since 1984.  Zenith, based in Glenview, said in May
that it planned to file for bankruptcy-court protection and
become a closely held unit of its largest shareholder, LG
Electronics Inc. of South Korea. Under a reorganization  
plan, Zenith plans to convert $200 million owed to LG
Electronics into 100 percent equity in the restructured
company.  Unable to keep up with competitors in the face of
ferocious price cutting in consumer electronics, the
company had reported just one profitable quarter since
1985. McNulty replaces Robert N. Dangremond, who had been
acting CFO since January. (Chicago Sun Times - 06/15/98)


Bond pricing, appearing each Friday, is supplied by DLS     
Capital Partners, Dallas, Texas.

S U B S C R I P T I O N   I N F O R M A T I O N     
Troubled Company Reporter is a daily newsletter, co-
published by Bankruptcy Creditors' Service, Inc.,
Princeton, NJ, and Beard Group, Inc., Washington, DC.  
Debra Brennan and Lexy Mueller, Editors.   
Copyright 1998.  All rights reserved.  This material
is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly
prohibited without prior written permission of the
Information contained herein is obtained from sources
believed to be reliable, but is not guaranteed.   
The TCR subscription rate is $575 for six months   
delivered via e-mail.  Additional e-mail subscriptions
for members of the same firm for the term of the initial   
subscription or balance thereof are $25 each.  For   
subscription information, contact Christopher Beard
at 301/951-6400.  
        * * *  End of Transmission  * * *